Non-QM Lending Guidelines

Understanding common requirements across major Non-QM lenders. These are general guidelines—specific lenders may have different criteria.

Bank Statement Loans
For self-employed borrowers who can't provide traditional income documentation

Typical Requirements

  • CreditMinimum 620-640 FICO (lender dependent)
  • Down Payment10-20% minimum (varies by property type)
  • Documentation12 or 24 months personal or business bank statements
  • DTIUp to 50% (some lenders allow higher)
  • Loan AmountUp to $3-4M (varies by lender)

Common Overlays

  • SeasoningBusiness must be operating 2+ years
  • Reserves6-12 months PITIA required
  • PropertyPrimary, second home, investment allowed
  • OccupancyOwner-occupied typically gets best pricing

Income Calculation Methods

  • • Personal Bank Statements: Deposits minus business expenses (typically 50% expense ratio)
  • • Business Bank Statements: Deposits minus expenses, divided by # of owners
  • • Hybrid: Some lenders allow combination of personal + business statements

Important: These guidelines represent common requirements across multiple Non-QM lenders. Individual lenders may have different criteria, overlays, or exceptions. Credit score, down payment, reserves, and other requirements can vary significantly based on the specific lender, loan program, property type, and borrower profile. Always consult with a licensed mortgage professional for accurate, lender-specific guidelines.

Free: Non-QM Qualification Checklist

Download the exact checklist our specialists use to evaluate borrower eligibility across all Non-QM programs.

Frequently Asked Questions

Common questions about Non-QM loan guidelines and eligibility requirements.

Most Non-QM programs accept credit scores starting at 620. Some programs — particularly those with larger down payments or strong reserves — go as low as 500. The exact minimum varies by lender, program type, and LTV.
Most lenders require 12 or 24 months of personal or business bank statements. Using 24 months typically results in a more accurate income average and may qualify you for a higher loan amount.
Most DSCR programs allow up to 80% LTV for purchases and 75% for cash-out refinances. Some lenders offer up to 85% LTV with strong DSCR ratios (1.25+) and higher credit scores.
Most lenders require a minimum DSCR of 1.0, meaning the property's gross rent equals or exceeds the total monthly mortgage payment (PITIA). Some programs allow DSCR below 1.0 (no-ratio) with larger down payments.
Non-QM seasoning requirements vary by lender. Some programs allow applications as soon as 1 day after a Chapter 7 discharge. Most programs require 1-2 years. Chapter 13 may require 12-24 months of on-time plan payments.
Reserve requirements vary by program and LTV. Most programs require 3-12 months of PITIA in liquid reserves. Investment properties and higher LTV loans typically require more reserves. Retirement accounts may count at 60-70% of their value.
Yes. Most Non-QM programs allow you to use rental income from other investment properties to qualify. Documentation requirements vary — some programs accept lease agreements, others require 12-24 months of bank statement deposits.
Non-QM programs cover a wide range of property types: single-family, condos, 2-4 units, multi-family (5+), mixed-use, and non-warrantable condos. Rural properties and unique property types may have additional restrictions.
Yes. Non-QM loans are available for primary residences, second homes, and investment properties. Primary residence programs typically offer the most favorable rates and LTV allowances.
Most Non-QM programs offer loan amounts up to $3-5 million. Jumbo Non-QM programs may go higher with additional requirements. Minimum loan amounts are typically $100,000-$150,000.